I work for a world-class organization in the Northwest. In my experience at previous financial institutions, I have never encountered as much static on signature card audits as I have at my new home. Don't get me wrong, I'd rather be conservative than sloppy...I just wanted to pose a few question to the banker community:

Supposing that you have an existing account with an owner who's ID has expired. Is it a requirement to create a new signature card when you update the member's profile on the system with new ID information? We have a paradox at our FI...because it IS our policy to require a new sig card under these circumstances, we have potentially THOUSANDS of account profiles that are not current because staff doesn't want the headache of creating a new account card (especially when joint owners are involved).

Consider this scenario...a member opens an account with an out-of-state ID. A few years later, member acquires a new in-state ID. Teller/loan officer updates member profile on the system with new ID. Audit team notifies staff member who performed account maintenance of an audit exception because a new signature card was not captured.

Another scenario: Existing member with expired CIP/KYC adds joint to the account. New sig card signed & joint information is current. Account specialist fails to update existing primary member CIP (including ID) and newly established joint member flies out of state to their place of residence. Audit team notifies staff member who performed account maintenance that he/she will need to have members re-sign with updated ID information on primary account holder.

I am not advocating for illiteracy or laziness. I feel as though I have a clear understanding of when a new signature card is required (ie. name change, adding/removing joint owners, etc.). I am simply seeking to understand. What say you, banking community? Even when a loan officer fails to properly update an existing profile when adding a new joint owner (coaching opportunity, certainly), does this warrant a new signature card to be signed?

Unless there is something special buried in State law or your credit union regulations, I think someone nees to re-think your policy. It has no basis in normal banking regulation, contract or other fact.

Just the expense in this seems overwhelming!!! What a waste of time and resources. We simply capture the updated ID info and/or utilize a signed change of address form when applicable, do the account maintenance, and are set. I would need to double my account services staff to create a new signature card on each occasion.

While it is great to update the Id even that is not a requirement, unless you policy states that it is needed.


Does a contract expire every time you drivers licence expires.

Agree! We have signature cards from the 70's still on file here, but the system is updated with the new ID info, when available. I really don't understand the reasoning behind this policy. Can anybody there explain why it is that way, or is because "we've always done it that way"? I work at a federal credit union, and this is not a requirement that I know of, and the NCUA examiners have never mentioned it.

I have never seen nor experienced such a process!

I'm with the other posters here and have not seen or heard of this before. I would make an informal recommendation to management to remove this requirement from the policy. I would explain how inefficient it is and is not a best practice in the industry. I find, at times, that things are they way they are because it's always been that way and no one has bothered to find a better more efficent way. As the auditor at my bank I find management to be very reseptive to my opinions on best practice recommendations.

Ditto here. Think it's time to revise your policies and procedures. Can't imagine why an auditor didn't suggest a change.
Good luck!

Thank you, team. I appreciate the feedback.